Understanding the different available statuses
Before creating your company, it is essential to find out about the different existing legal statuses. Each status has its own advantages and disadvantages. Choose the right status for your business is therefore essential to ensure its proper functioning and sustainability.
Take the time to learn about the legal statutes available, such as auto-entrepreneur, SJSC, LLC, ILLC, etc.
Consider the advantages and disadvantages of each status
Once you have a good understanding of the different legal statuses, it is important to weigh the advantages and disadvantages of each. Consider the tax, social, liability and flexibility aspects offered by each status.
For example, the auto-entrepreneur status offers great administrative and fiscal simplicity, but it may not be suitable for a business with significant investments or a high turnover.
Indeed, the auto-entrepreneur regime is limited in terms of annual turnover. For the year 2021, the ceiling is set at 72,600 euros for the sale of goods and the provision of accommodation and 176,200 euros for the provision of services and the liberal professions. Beyond these thresholds, the auto-entrepreneur must switch to the real tax system.
It is therefore advisable to evaluate your potential turnover before choosing this status. Moreover, note that the auto-entrepreneur system does not allow you to deduct the real costs of your activity, but offers a flat rate deduction depending on your activity. It is therefore important to understand the tax implications of this system before you start.
Choose the status adapted to your activity and situation
Finally, choose the legal status that best suits your business and your personal situation. Do not hesitate to consult a certified accountant or a lawyer specialized in business law to help you make the most appropriate decision. Creating a business plan will also help you decide on the legal status of your company. The wrong choice of legal status can lead to administrative, tax or legal complications in the long run.
For more information on the different legal statuses and to find a chartered accountant or a lawyer specialized in business law, you can consult the website of Captain Contrat.